CRISIS

02.11.12

Greek Leaders Warn of Default

Thanassis Stavrakis / AP Photo

In the midst of a two-day strike, Greek leaders warned a “dangerous, unknown” path is ahead if an agreement is not reached over the deeply unpopular European Union and International Monetary Fund bailout. “The consequences of a disorderly default would be incalculable for the country—not just for the economy,” said Deputy Finance Minister Filippos Sachinidis. Parliament will vote Sunday over the 3.3 billion euros in deep austerity cuts proposed in the 130v billion euro bailout that Greece desperately needs to avoid default—which could result in the country being removed from the euro regime. While Prime Minister Lucas Papademos has a majority, six cabinet members have resigned in protest and a number of lawmakers have said they are planning on voting against the deal. German Chancellor Angela Merkel warned Friday that there will be “uncontrollable consequences” for the euro zone should Greece default.